I’m going to assume that it was a bug. But when using a new copy of the 4.27 Template, playing as client will do exactly that behavior. If you go to Level Editor - Play - Multiplayer Options and turn off Run Under One Process the headset tracking will work.
It will fire up a server console instance window every time, but at least it works.
It seems that what’s happening is that client movement info is going to the server, not updating the server, and the server is returning authoritative movement info back to the client. You can sort of see it in that it will move but just keeps snapping back to the origin.
This is 4.27 w/ the new VR Template with no changes except Play As Client = will fail.
Change Run Under One Process to false = will work.
Windows/Oculus Rift